EUR/JPY Price Analysis: Cross gains ground with subtle consolidation signs

The daily RSI is pointing upwards, hovering around 70, but continuing red bars in the MACD show a trailing consolidation.
On the hourly chart, indicators are neutral and reside in the positive terrain.
The 20-day SMA at 169.00 serves as an important threshold for sellers.

Patricio Martín FXStreet

On Friday's trading session, despite recent downside corrections, the EUR/JPY pair managed to reclaim its stance above 170.00. This indicates a shifting of the bearish momentum observed on Thursday when the pair marked a daily low at 169.00.

The daily Relative Strength Index (RSI) has pivoted, now pointing upwards near 70, suggesting a possible reversal. However, the MACD is still printing red bars, confirming that the pair is in a consolidation phase with limited upside. These mixed signals necessitate following the pair closely to determine if this marks a fresh bullish momentum or merely a pause in a more pronounced downward correction.

EUR/JPY daily chart

On the hourly chart, indicators are maintaining their neutrality, inhabiting the positive territory. This could potentially point to a subtle strengthening of bullish sentiment despite the ongoing consolidation phase.

EUR/JPY hourly chart

Critically, the position of the EUR/JPY pair continues to hover above the significant SMAs. The 20-day SMA at 169.00 in particular stands out as a crucial threshold and sellers must conquer this level to flip the near-term bullish outlook. Should the position fall below this key support level, the 100 and 200-day SMAs provide further safety barriers for potential sellers.

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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